PLASTIC OMNIUM (EPA:POM) - Despite strong activity and a buoyant backlog, operational difficulties affecting the start-up of the new Greer plant (South Carolina) have led the Group to review its financial outlook for 2019
Despite strong activity and a buoyant backlog, operational difficulties
affecting the start-up of the new Greer plant (South Carolina) have led
the Group to review its financial outlook for 2019
Over the first nine months of 2019, Plastic Omnium Group activity was very
strong. Economic revenue amounted to EUR6,852 million (EUR6,356 million in
consolidated revenue), up 17.0%. At constant scope and exchange rates, the rise
was 2.7% compared to September 30, 2018, i.e. outperformance of 8.7 points
compared to automotive production estimated to be down 6.0% over the period*.
At the same time as this strong business, Plastic Omnium experienced
significant operating difficulties in the ramp-up of its North American Greer
plant (South Carolina). The difficulties encountered relate to the size of the
plant, the complexity of the process and the acceleration of volumes since
A detailed action plan covering the 2019-2020 period has been put in place
across the entire industrial footprint in South Carolina.
The impact of these difficulties has led the Group to review its operating
margin outlook for 2019, which is now expected to be around 6% of revenue.
With the exception of this plant, Plastic Omnium's entire industrial network is
continuing to demonstrate its customary manufacturing efficiency.
The Group's fundamentals are sound and the business momentum is strong while
the cost reduction and free cash-flow generation programs have been
For FY 2019, the Group:
- confirms outperformance of at least five points compared to worldwide
automotive production estimated to be down by more than 5%*;
- revises its operating margin outlook, now expected to be around 6.0% of
- confirms that its 2019 EBITDA will exceed its 2018 EBITDA;
- expects free cash-flow generation of approximately EUR300 million, including
the impact of the real estate disposal project already announced.
Order intake is dynamic and, thanks to its solid backlog, the Group forecasts
to once again outperform the automotive production by more than five points in
The Group will release details of its Q3 2019 revenue on October 24, 2019.
*Source: IHS, September 2019
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Plastic Omnium is the world leader in intelligent exterior systems, clean
energy systems and automotive modules.
The Group and its joint ventures have 32,000 employees in 128 plants, 24 R&D
centers and 26 countries worldwide, serving 92 automotive brands.
Plastic Omnium is listed on Euronext Paris, compartment A. It is eligible for
the Deferred Settlement Service (SRD) and is part of the SBF 120 and CAC Mid 60
indices (ISIN code: FR0000124570).